Trade openness and economic growth: Evidence from Azerbaijan
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DOIhttp://dx.doi.org/10.21511/ppm.20(1).2022.45
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Article InfoVolume 20 2022, Issue #1, pp. 564-572
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A review of modern economic literature shows the lack of consensus on the relationship between the trade openness policy and the economic growth of countries. There is also an opinion that the policy of openness in emerging and resource-rich countries presents more opportunities for growth and development. Is this true, and under what conditions does openness lead to growth? Exploring the nature of trade openness and economic growth relationship in resource-rich emerging countries is the purpose of this paper. Therefore, the economy of Azerbaijan, rich in hydrocarbon resources, has been chosen as the object of this study. Next, the VAR model using ADF tests and Johansen’s cointegration was chosen to analyze and evaluate the causal nature of the relationship between openness and growth. Trade openness ratio and GDP per capita growth are model variables. The study covers annual data from 1995 to 2020. It was found that there are no cointegration relationships between variables in the long run. However, there is a unidirectional causal relationship from openness to growth in the short run, and the effect of growth to openness is not statistically significant. The results show that Azerbaijan receives economic benefits from openness by selling oil to the world market. Yet, the short-run nature of such benefits and the lack of feedback from growth to openness suggest specific problems in the diversification and quality of the country’s exports.
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JEL Classification (Paper profile tab)F10, O24
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References40
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Tables4
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Figures1
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- Figure 1. Dynamics of GDP, exports, and imports of Azerbaijan in 1995–2020 (in millions of USA dollars)
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- Table 1. ADF test
- Table 2. Johansen test
- Table 3. Unrestricted VAR model
- Table 4. Model quality indicators
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Marketing potential of the Sino-Russian bilateral agricultural export market
Zhang Fenghe
,
Viktoriia Medvid 
,
Lu Xu
doi: http://dx.doi.org/10.21511/im.17(2).2021.15
Innovative Marketing Volume 17, 2021 Issue #2 pp. 164-176 Views: 886 Downloads: 404 TO CITE АНОТАЦІЯChina and Russia are important agricultural countries in the world. Expanding exports and increasing sales of agricultural products play an important role in the economic development of both countries. To understand the current situation of agricultural exports of the two countries and formulate strategies to expand the marketing of agricultural products, this paper uses the UN Comtrade Database 2009-2018 on Chinese and Russian bilateral agricultural export sales and other trade data to calculate the (expansion margin) and (price margin) of agricultural exports, (quantity margin), to analyze the types, prices, and quantities of exported agricultural products. The results show that China exports to Russia mainly labor-intensive types of agricultural products such as processed agricultural and horticultural products, accounting for 87.46% of total agricultural exports on average. The increase in exports is mainly due to the continuous increase in the prices of exported agricultural products. Russia exports to China mainly land-intensive types of agricultural products such as animal products, grains, oilseeds and fat products, which accounted for an average of 79.07% of total agricultural exports. The increase in exports was mainly due to the continuous increase in types and quantities of agricultural products to develop the export potential of agricultural products and expand sales. In addition, China should expand the types and quantities of agricultural products exported, and Russia should increase the added value of agricultural products and raise the export prices of agricultural products.
